Posted on 6 February 2011 by Maria
I'm 33 and own a property in the North which has a small mortgage on it. I've had it rented out and tried to sell it but with no joy. I live in the South in rented accomidation and I need to find the deposit for a new house. Could I raise the funds on my house in the North and hopefully sell at a later stage?
In theory this is certainly possible. In practice it will very much depend on how much rent you receive each month and whether or not that is sufficient to cover the monthly interest payments plus between 25%-30% on top. For instance if your mortgage interest was £100 per month you would need around £125 - £130 rental per month.
I believe you would benefit from speaking to one of our independent mortgage advisers. If you call on 0344 346 3672 and tell the adviser the date of your question, they will be able to look at your situation and take it from there.
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